IFRS 10 - Consolidated Financial Statements
Financial Dictionary — IFRS & IAS Standards
Definition
IFRS 10 establishes principles for presenting consolidated financial statements when a parent controls one or more subsidiaries. Control exists when the investor has power, exposure to variable returns, and the ability to influence those returns.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IFRS 10 - Consolidated Financial Statements** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.